Transport By Individual Truck Operators Without Consignment Note Not Taxable As GTA: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 24 March held that service tax under the Goods Transport Agency (GTA) category cannot be levied where transportation is undertaken through individual truck operators without issuance of consignment notes.A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member Bhagya Devi set aside the demand raised on freight expenses incurred for transportation of iron ore for export by Doddanavar Brothers,...

CESTAT Bangalore Allows SEZ Unit Service Tax Refund On Employee Group Medical, Personal Accident Insurance

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore has set aside the rejection of a service tax refund claim filed by ANZ Support Services India Pvt. Ltd., an SEZ unit, holding that denying refund on the ground that employee group medical and personal accident insurance do not fall within “General Insurance Services” is “absolutely irrelevant” in the facts of the case. A bench comprising Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi while dealing...

Supreme Court Dismisses Fox Mandal's Appeal In ₹3.89 Crore Service Tax Case

The Supreme Court recently (March 25) dismissed an appeal filed by Fox Mandal and Company against the Commissioner of Central Goods and Service Tax, Noida, declining to interfere with the CESTAT order, which upheld service tax and CENVAT-related demands aggregating to about Rs. 3.89 crore.While refusing to interfere with the CESTAT judgment dated December 11, 2024, which had upheld substantial service tax demands and remanded certain issues for reconsideration, a bench of Justices Pamidighantam...

CESTAT Chennai Sets Aside TANTRANSCO Demand As Time Barred, But Clarifies Rent-a-Cab Service Taxable

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal on 24 March, held that hiring motor vehicles for official use, classified as rent-a-cab services are not eligible for exemption under the reverse charge mechanism and remain liable to service tax, as they are merely facilitative in nature and not integral to the core function of electricity transmissionA Bench comprising Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. clarified that such services does...

Transportation And Disposal Of Fly Ash Not Cargo, No Service Tax Leviable: CESTAT Bangalore

On 24 March, the Regional Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Bangalore, held that transportation and disposal of fly ash cannot be classified as 'Cargo Handling Service' under the Finance Act, 1994. A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member R. Bhagya Devi, set aside substantial service tax demands raised by the Department against Threyambaka Enterprises. The Tribunal stated:“...the Revenue is of the opinion that since...

CESTAT Chandigarh Upholds Transfer Of CENVAT Credit After Shift Of Centralised Registration

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chandigarh Bench, has recently held that transfer of unutilised CENVAT credit by a taxpayer from its Jaipur office to Gurgaon upon shifting of centralised registration is legally sustainable, in the absence of any dispute regarding the validity of such credit at the original location.A coram of Judicial Member S.S. Garg and Technical Member P. Anjani Kumar, while rejecting the Revenue's objection to the transfer of credit, noted...

Technical Glitch On Portal Cannot Deprive Taxpayer Of Sabka Vishwas Scheme Benefit: Bombay High Court

The Bombay High Court on 11 March held that the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 cannot be denied on mere technical grounds when a taxpayer is not at fault. A Division Bench comprising Justice G. S. Kulkarni and Justice Aarti Sathe allowed a writ petition by Himtaj Ayurved Pvt. Ltd and directed the authorities to issue it a discharge certificate, emphasising that the scheme is a one-time measure aimed at resolving legacy disputes and ensuring disclosure of...

Failure To Specify Statutory Provisions Vitiates Service Tax Demand: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, on 17 March set aside a service tax demand against Trade Line, holding that the Department cannot proceed when it fails to put the taxpayer on notice of the statutory provisions applicable to the relevant period. The Bench comprising Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. held:“We also find that the Appellant has rightly contended that the Show Cause Notice No.30/2013 dated 18.09.2013 has not put...

CESTAT Chandigarh Allows Indus Towers Appeals, Upholds CENVAT Credit On Telecom Towers, Shelters, Input Services

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal has allowed appeals filed by Indus Towers Ltd., holding that CENVAT credit on inputs, capital goods and input services relating to telecom towers and shelters is admissibleThe dispute arose from multiple show cause notices issued for the financial years 2014–15 and 2015–16, alleging wrongful availment of CENVAT credit on inputs, capital goods and input services used for providing passive telecom infrastructure....

Service Tax Demand Unsustainable Where Warranty Services Qualify As Works Contract: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 19 March, held that a service tax demand cannot be sustained if warranty services qualify as Works Contract Services and all material particulars are duly disclosed, and that invoking the extended period of limitation is improper in the absence of suppression. A Bench of Judicial Member Dr. Rachna Gupta allowed the appeal filed by Electrocare, set aside the service tax demand raised for FY 2014–15,...

Tax Refund Cannot Be Denied As Time-Barred Where Service Was Not Provided: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal on 20 March held that refund of service tax paid on services which were ultimately not provided cannot be rejected on the ground of limitation under Section 11B of the Central Excise Act, 1944. A Division Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya was hearing appeals filed by Indiabulls Distribution Services Ltd against rejection of refund claims on the ground of time bar. The...

CESTAT New Delhi Grants Rs 2.93 Crore Refund To McCann Erickson, Says Refund Of Excess Service Tax Not Time-Barred

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that the Government cannot deny refund of excess service tax paid by mistake merely on the ground that the refund claim was filed after the limitation period, observing that amounts not legally payable as tax cannot be retained by the authorities. A coram of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya said that where tax is paid without any legal liability, such payment does not...